The assumptions of the TVP commercial offer for 2015

Prognozy na 2015

Thank you for your attention

Altered items

Forecast for 2015

Thank you for your attention

The assumptions of the TVP commercial offer for 2015

Altered items

Strong foundations for

individual consumption

In today’s economy real wages are continually on the increase, which is reflected in the retail sales growth index that follows closely behind.

Źródło: GUS

The dynamics of retail sales (left scale ) against the dynamics of real wages in the economy (right scale)

-2%

-1%

0%

1%

2%

3%

4%

5%

-4%

-2%

0%

2%

4%

6%

8%

10%

Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14

Retail sales

The current value of the consumer confidence index (-14.1 in October this year) is at its highest since July 2010, after a period of continued growth.

This indicates that consumers’ assessment of their financial situation, the situation of the national economy and the level of household purchasing is clearly continually improving,

Source: GUS

A notable improvement in consumer confidence

* Forecast

Trends in individual consumption – consumer confidence index

-35

-30

-25

-20

-15

-10

The advertising market follows

GDP growth

In effect, forecasts which stipulate that the advertising market will grow even more in 2015 (3.2%) in relation to 2014 are quite justifiable, in spite of the fact that the GDP dynamic is likely to remain at similar levels. On the other hand, the increase in GDP will definitely be in excess of 3% again.

Source: GUS, Starlink, own estimations

-15%

-10%

-5%

0%

5%

10%

15%

20%

0%

1%

2%

3%

4%

5%

6%

7%

8%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015*

GDP change

* Forecast

GDP dynamics (left scale) and Net changes in the advertising market (right)

The importance of TV commercial communication, its share in the „advertising cake” after the recent period of continued growth is one of the largest in history. This is why the increase of the TV advertising market is higher than that of the overall advertising market.

Źródło: Starlink

TV 51,8%

Internet 22,6%

Radio 7,8%

Outdoor 6,2%

Magazines 6,1%

Newspapers 4,3%

Cinema 1,2%

6,4% 6,4% 6,3%

-1,7%

-9,3%

-15,4%

-19,2%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Internet Radio TV Outdoor Cinema Magazines Newspapers

Change dynamics by media sectors Q1-Q3 2014/2013 The share of media sectors Q1-Q3 2014

The share of electronic media,

including TV, is on the increase

Effectively, next year we expect approximately 5% more money to be spent on television advertising than this year.

Źródło: Starlink i estymacje własne

3533

3668

3844

3 350

3 400

3 450

3 500

3 550

3 600

3 650

3 700

3 750

3 800

3 850

3 900

2013 2014* 2015*

Total net investment in television advertising

More money to be spent on television

advertising in 2015

* Forecast

Free digital terrestrial television is becoming an increasingly significant element of overall TV consumption. Its development is contributing to the continuous improvement of the results achieved by broadcasters who take advantage of this type of broadcast. programów.

Source: NAM

14,9%

34,4%

41,6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2012 2013 2014

The percentage of overall viewing time on DVB-T

DVB-T is increasingly

popular

Share of the TVP channels in the viewing figures

Popular programms and the progressive outflow of viewers from the paid forms of linear TV will further consolidate the TVP thematic channels, and result in the already noticeable slowdown in the drop of viewers of the general channels.

Source: NAM and own estimates, 16-59 segment

Cała Grupa TVP w 2015: 26,63%

18

,4%

10

,0%

8,5

%

7,8

%

1,7

%

1,6

%

1,0

%

0,7

%

0,6

%

0,6

%

0,6

%

0,5

%

0,4

%

0,3

%

17

,9%

9,6

%

8,3

%

8,7

%

2,2

%

1,4

%

1,1

%

0,9

%

0,7

%

0,7

%

0,6

%

0,5

%

0,4

%

0,3

%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

TVP1+TVP2 TVP1 TVP2 TVP Tematyczne

TVP Seriale TVP INFO TVP Rozrywka

TVP Regionalna

TVP HD TVP Historia

TVP Polonia TVP Kultura TVP ABC TVP Sport

rok 2014

rok 2015

The share of viewers in the 16-59 segment in 2015 (estimate) against the 2014 results, without the sporting events

Strong TVP programme

profile

Also in the coming year, our general channels will be filled with programms that will attract mass, multimillion audiences every day of the week.

THURSDAY SUNDAY MONDAY TUESDAY WEDNESDAY SATURDAY FRIDAY

Welcome

New items in the 2015 offer

Prognozy na 2015

Thank you for your attention

A swift transfer into the new year

The 2015 offer will be launched on 1 FEBRUARY 2015

January is still sold according to the principles of 2014 pricing.

Budget thresholds – and all is clear

Rationalizing terms and conditions, favourable market transparency. Within each threshold, conditions will be specified based on such variables as expenditure level, method of purchase, budget involvement and history of cooperation.

Over 5m– according to theTVP negotiation guidelines

Threshold Expenditure value

CPP OFF KZP

TVP1+2

(16-59) MIN

CPP OFF KZP

TVP1+2

(16-59) MAX

CPP OFF KZP

TVP Tematyczne

(16-59)

Basic ZCP discount

1 Up to 1 mln 1 400 1 500 1000 32%

2 1 - 2 mln 1 300 1 400 980 35%

3 2 - 3 mln 1 250 1 300 960 38%

4 3 - 4 mln 1 200 1 250 940 40%

5 4 - 5 mln 1 150 1 200 920 42%

*Supplementary charge for Prime Time TVP1+2 34%, TVP thematic channels 40%.

• We consider all client investments (Internet with the sub-declaration) for declaration purposes

• We count the money actually spent

• Each client has an individually prepared declaration and terms and conditions

• Budget thresholds up to 5m are disclosed, everyone can review their costs

• We are giving up packrats which will be functionally replaced by the rating price list (KZP) according to the lowest threshold (discount from the price list at PakRat does not apply).

Calculation of declarations –transparency

above all

• Assigning the appropriate threshold conditions on the basis of the contractor’s formally confirmed declaration:

– if there is no declaration and there hasn’t been one – conditions for the first (lowest) threshold obtain

– Increasing the declaration during the year - from the moment of the new declaration, without calculating back.

– New conditions obtain with the formally submitted new declaration, not automatically from the time of its realization.

• No realization of declaration – recalculation from the beginning of the offer

• This structure strongly promotes the submission of real declarations at the beginning of the year

Realizing declarations –

bonuses for decisive clients

• An increase in the price-list share in TVP in 2014 has called for an even greater desire to focus it down to reality, hence the radical realignment of pricing:

– average price-list prices will be down by an annual average of approx. 42%.

– average price-list discount will drop by about 20%.

• The realignment scale is similar for all channels (general and thematic)

• In the tariff price-list we will only leave discounts for the size of investment and the price-list share

• We shall give up discounts „for cooperation”; however, the whole is balanced in such a way that the effect is neutral.

More clarity: transparent

prices and simplified discounts

A straight road to even more

attractive price- list conditions in

TVP

We will continue to encourage our customers to use tariff pricing as the best way to minimize the risk of failure to achieve the objectives of the communication campaign. Additional discounts will make this form of purchasing even more attractive.

Share of tariff pricing in the expenditure Additional ZCP discount

0% – 49.99% 0%

50% – 59.99% 5%

60% – 69.99% 10%

70% – 79.99% 15%

80% – 89.99% 20%

90% – 99.99% 25%

100% 30%

More effective narrow target

based packages

• We are introducing packages according to the rating price list (KZP) based on narrow target groups.

• They will be introduced to TVP1+TVP2, and separately to the TVP thematic channels.

• Predefined list of groups:

• Sales bookings according to narrow groups will be given priority over orders for the basic group

• Indices for the groups sold (16-59) will be announced every month with the opening of sales, together with the tariff price list

• These indices may differ for TVP1 and TVP2 (treated together) and for the thematic channels (also treated together).

Women 25-59 Women 16-34

Everyone 16-34 Women 16-59

Everyone 25-59 living in cities

• The monthly indices will be the same for the main and thematic channels

I II III IV V VI VII VIII IX X XI 1 - 20 XII 21 - 31 XII

0,68 0,9 1,1 1,15 1,19 1,12 0,8 0,85 1,17 1,22 1,2 1 0,62

• In 2015, clients who buy a package in the thematic channels will be able to relinquish three channels of their choice free of charge (in 2014, they could only relinquish one + TVP Polonia)

• Each time the „rejected” channel will be additionally paid for in the same way as in 2014, at +5%

• Because of a need to drive campaign parameters in the rating price-list for narrow groups; in this case clients will not be able to select channels.

• Another thing made easier: no supplementary charges or indices will be used for the broadcasting of „zero” spots, with the payment of PLN 10

Simpler indices, easier procedures

for rejecting a channel

Minima for the packages – in line

with common sense

• The lowest orders in 2015 will be 10 GRP for TVP1 and TVP2 and 2 GRP for other channels, which guarantees precision of delivery

• Packages will be accounted for up to 102% of the order, with the exception of extremely short packages:

– Packages for up to 3 days inclusive: a real GRP each

– From 4 to 7 days inclusive: up to 115% of the order

• With an additional 10% payment clients will be able to indicate breaks in the realization of their packages

• We will also accept only one „daypart” (with even smaller additional 5% payment)

Because of the virtually continuous operation of the optimizer we cannot guarantee a list of spots even on the day of broadcast, but the Jubileo preview will available on an ongoing basis.

• The price of Prime time in the main channels will be the same as in 2014 (+34%)

• The prime deficit in the thematic channels forces us to set an additional payment for these channels at a level of +40%.

• We will be simplifying the issue of the appearance of many logos in one spot – one small and simple additional payment of 5% instead of trying to specify how many advertisers can be included.

• We are radically reducing payments for the so-called „express” in thematic channels:

– Only 100/150/250, dependent on the notice;

– Payments for actually planned broadcasts and not per day (regardless of whether it is a day with broadcasts or an empty day).

• In 2015, all special and cancellation fees will be convertible to bigger investments in sponsorship, tele-paper and the Internet.

Simplified rules of additional

broadcasting services

New item: packages in

sponsorship

THEMATIC VIDEO

THEMATIC CHANNELS+ TVP.PL THEM.. SYNERGY OF THE MEDIA NO PRODUCT EXCLUSIVITY CONDITIONS DICTATED BY THE BUDGET

MULTISCREENING SYNERGY OF THE MEDIA

PRODUCT EXCLUSIVITY SPECIAL CAMPAIGNS

VIDEO TVP1, TVP2, TVP.PL ROS

SYNERGY OF THE MEDIA NO PRODUCT EXCLUSIVITY

Sponsoring will be (also) available in packages, which will be created based on viewer groups and content. They can be combined with online exposition.

Their accounts will be handled based on the number of broadcast sponsor references.

• We are certain of the continued increase of our reach and viewing figures owing to the strong support of TVP channels

• We are expanding the sales of video ads in the TVP content in partnership and external services (embedded player with advertising and content).

• We are present in the video streaming tree in the Megapanel research.

• We are introducing the broadcast of interactive spots (desktops).

• Premium content without charges but with advertising (TV series, films, documentaries, sport programmes, news), which increases the reach of online campaigns

• We create specific programme dedicated apps for second screen, counting on real time social engagements – all TVP platforms are used for involving a viewer

• There will be also new packages in online content itself with content and viewer group targeting

• Product placement will be possible in the dedicated online material (www, mobile, HbbTV, smart tv, Facebook, Youtube, Twitter)

Increasingly popular online

video Reach: 4 mln UU, Ad space: 55 mln pre-mid-postroll*

* GemiusTraffic, Adcean, Nobember 2014

• New HbbTV applications will be introduced in 2015

• The technology which allows for registering the viewed content and recommending TVP programmes is already available

• A new TVP application with new advertising formats which will allow for reaching HbbTV TVP viewers with an interacting advertising message.

• HbbTV advertising and apps are downloadable from the TVP adserver, which provides an opportunity to fully measure and account for interactions, reach and broadcast with the use of codes.

• We are launching a cycle of multifaceted HbbTV research, including the consumption of advertising in this channel

Hybrid television

is becoming increasingly

popular

TV HBB

Reach: 0,75 mln UU, PV: 65 mln*

* GemiusTraffic, Adcean, listopad 2014

Even stronger mobile channel

1 000 000 downloads

TVP.pl

TVP Stream

575 000 downloads

575 000 downloads

* GemiusTraffic, Adcean, November 2014

• The entire TVP video content aggregated in one app!

Our dedicated online team is going

from strength to strength

• We are consolidating the interactive products sales team

• Exclusive sales of all products since January 2015

online@tvp.pl

Agency team Traffic team Product

development team

• Clients won’t have to inform us about their film when the campaign is continued – we shall broadcast the last used spot for the product (although we will accept another film any time).

• You don’t have a film ready? No problem! We can play a film found in the TVP archives, though no later than a year since the last broadcast (special fee of PLN 1000).

• A tool for the producers of advertising materials: within a year we will introduce a system which will allow for including all films and a statement of meeting the „food criteria” (films which present food articles, together with the film upload.

• Our internal recommendations limit the time of receiving comments on invoices to 30 days.

Sending films and invoicing

• The basic accounting group for TVP is the ”everyone 16-59 group”.

• Advertisers’ statements regarding the films which advertise food will be required by all stations for broadcasts beginning 1 January 2015.

• Adverts with food products which will not be accompanied by the required statement will not be broadcast with children’s programmes.

• The current legal provisions force us to charge an additional 11.11% „beer” fee on all advertising materials, including sponsorship.

• Please remember the confidentiality clause regarding the third party (including auditors) and the requirement of verifying prices with the broadcaster.

• Attention! Please note that delays in payment may cause a deterioration of the terms and conditions of trade. Please let us know should any such delay occur.

• We assume the joint and several responsibility of the media house and an advertiser.

Summary

Welcome

Prognozy na 2015

Thank you for your attention

Altered items in the offer